A recent survey conducted by Liverpool based fashion brand, Chums, asking over 55s their thoughts and concerns for the future found that many people are delaying retirement or are returning to work due to financial concerns around the current cost of living crisis. It's a scary thing to think that that is the case and that people who should be approaching retirement age are instead having financial struggles or worries. It is true that the future is never certain, none of us have a crystal ball showing us what lies around the corner and sometimes things are totally out of our own control - such as the cost of living crisis. But it's important to look at the things that we can control, and the things that we do have control over are the things that we can put in to place now to help plan for what can be an uncertain future. Here are some ideas:
1. Join a pension scheme as soon as you start working. The earlier you join a pension scheme, the better it will be for you when you reach retirement age. It's easy not to think about retirement when you're young and you first set out in the world of work, but the years pass quickly and you'll be seriously thanking yourself for thinking ahead when you do reach retirement age.
2. Save - no matter how small. When thinking about saving it doesn't have to be loads per month, it can be as small as £10/£20 a month, it soon adds up. £10 a month is £120 by Christmas and that's a good chunk that can help pay for gifts for others. Or putting money away for yourself or for your children future, even just £20 a month really can add up over the years when left untouched. The best way to save is to have the money come out of your bank by direct debit each month to a savings account, that way you don't think about, it can be treated just like another bill.
3. Invest your savings. If you have savings just sitting in your bank, research ways you can invest the money and make some sort of return. If you have a good chunk of savings, consider investing in property - buy to let can be a great way to make additional income monthly as well as having your money invested in a property that may increase with value. But there's also lots of different options, including simpler options like choosing the right bank that offers good interest on a savings account.
4. Find a side hustle that you're passionate about and enjoy. Are you creative? Do you enjoy crafting and making things? Have you thought about selling these things as a side hustle for extra income? Could you start a YouTube channel / blog / social media account and grow an audience and turn that platform into a way to make some income? What about making cakes? Or are you good with photography / videography? Finding a way to make an income out of something your passionate about and good at is a great way to plan for the future as you will have that to fall back on or it could even grow to become a full time opportunity for you. Side hustles can help pay the bills when you need that extra bit of money or you could use the money to put away into savings for the future or investments.
5. Look for things to cut back on or completely cut out. What expenses or items can you cut to help reach your savings goal? Start with the small things first, like taking a coffee or a tea in a travel mug out with you before you leave the house instead of buying one when at work or out. The same goes for lunches. You don't even have to cut them out completely, they could be a Friday treat.
Take a look at things like your TV bill, are you paying for channels you don't actually watch? Could you find your package cheaper elsewhere? If so phone the provider and tell them, see if they could match a deal you might be able to get elsewhere. Don't just auto renew contracts, make sure you check if there are better deals available elsewhere first. Do you have monthly memberships that you're not really using or are you paying for apps that you could have forgotten about?
Can you switch the way you shop for groceries, such as shopping online so you're not as tempted by in store deals or products designed to grab your attention that you might not otherwise have thought about buying? Can you switch supermarkets to find a better price for the food you're buying? Can you limit yourself with takeaways? Little savings can add up to a lot and every pound you save, can be a pound added to your savings for your future.
Whatever it is that might work for you to help you plan for the future financially, the bottom line is to start now. Your future self will definitely thank you for it.
Thank you for reading,
Alex xo
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